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From paper to plastic: Understanding the impact of eWIC on WIC recipient behavior

Author

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  • Hanks, Andrew S.
  • Gunther, Carolyn
  • Lillard, Dean
  • Scharff, Robert L.

Abstract

Evidence shows that the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) is underutilized. WIC enrolls 52.7% of eligible persons and participants claim a fraction of available benefits. Researchers suggest that people underutilize WIC because of the time needed to enroll in and use WIC and because participants may believe that, if others notice them participating in WIC, community members will stigmatize them. Recently enacted policies may reduce both time costs and potential for stigma associated with WIC. Congress mandated that, by 2020, all states disburse WIC benefits through an Electronic Benefits Transfer (eWIC) system. Given that eWIC reduces the time required for each transaction and and makes it more difficult to identify beneficiaries, we expect WIC redemptions to increase. In addition, eWIC might also increase the chance WIC recipients choose non-WIC foods for redemption increasing non-WIC expenditures. To measure the impact of eWIC on WIC redemptions and non-WIC food expenditures we analyze data on grocery expenditures of 11,887 WIC-participating households in one state over the period it implemented eWIC. We find that, after beneficiaries began redeeming WIC benefits through eWIC, spending on non-WIC eligible foods did not change but redemptions of WIC benefits increased.

Suggested Citation

  • Hanks, Andrew S. & Gunther, Carolyn & Lillard, Dean & Scharff, Robert L., 2019. "From paper to plastic: Understanding the impact of eWIC on WIC recipient behavior," Food Policy, Elsevier, vol. 83(C), pages 83-91.
    • Handle: RePEc:eee:jfpoli:v:83:y:2019:i:c:p:83-91
    DOI: 10.1016/j.foodpol.2018.12.002
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    References listed on IDEAS

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    Cited by:

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    2. M. Taha Kasim & Benjamin Ukert, 2021. "The impact of WIC participation on tobacco use and alcohol consumption," Contemporary Economic Policy, Western Economic Association International, vol. 39(3), pages 608-625, July.
    3. Katherine Meckel, 2020. "Is the Cure Worse Than the Disease? Unintended Effects of Payment Reform in a Quantity-Based Transfer Program," American Economic Review, American Economic Association, vol. 110(6), pages 1821-1865, June.
    4. Li, Xuemei & Saitone, Tina L. & Sexton, Richard J., 2022. "Impacts of Electronic Benefit Transfer on the Women, Infants and Children Program: Evidence from Oklahoma," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(2), May.
    5. repec:ags:aaea22:335863 is not listed on IDEAS

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    More about this item

    Keywords

    WIC; Food insecurity; Low-income; Electronic benefits transfer (EBT); Transaction costs; Assistance programs; Social benefits; Stigma; Redemptions;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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